How Lower Commissions Transform App Unit Economics (2026 Guide)

Jan 22, 2026•5 min read

For years, the "30% cut" was treated as a fixed cost of doing business, like gravity or taxes. Publishers built their financial models assuming that for every dollar earned, only 70 cents would actually reach the bank account.

But in the post-DMA landscape of 2026, that assumption is obsolete. With iOS alternative app stores like Onside offering commission structures closer to 10% (including payment processing), the math has fundamentally changed.

This isn't just about saving money. It is about how lower commissions aggressively reshape your App Unit Economics, turning previously unviable campaigns into profitable growth engines.

Here is how the shift from a 30% tax to a fair market rate transforms your P&L.

1. The Cash Flow Trap (CAC Recovery)

User Acquisition (UA) is a race against time. You spend money upfront to acquire a user, and you need to earn that money back before you run out of cash flow.

  • The Blocker: When Apple takes 30% off the top, it extends your "payback period." You are forced to wait longer for your capital to return, slowing down your ability to buy the next cohort of users.
  • The Onside Fix: Rapid Reinvestment.
  • Velocity: When you keep ~90% of revenue, every purchase contributes significantly more to paying off the acquisition cost.
  • Momentum: You recover your ad spend weeks or months faster, allowing you to reinvest that capital immediately and compound your growth.

2. The "Vanity Metric" of LTV

Gross Lifetime Value (LTV) looks good on a slide deck, but Net LTV is what pays salaries.

  • The Blocker: A user who spends $100 in your game is essentially worth only $70 to you on the App Store. That missing $30 is "dead weight" that scales linearly with your success.
  • The Onside Fix: Realized Revenue.
    • The Difference: That same user is worth ~$90 on Onside.
    • The Scale: Across a cohort of 10,000 users, that is a difference of $200,000 in realizable revenue—capital that funds your next title without needing a publisher advance.

3. The "Bid Ceiling" (Marketing ROI)

Your Return on Ad Spend (ROAS) is directly capped by your margin. If your margin is thin, your ability to bid for high-quality users is weak.

  • The Blocker: You are often priced out of premium ad inventory because your "allowable CPI" (Cost Per Install) is suppressed by the 30% fee. You lose users to competitors with deeper pockets.
  • The Onside Fix: Uncapped Aggression.
    • Buying Power: With lower fees, your LTV curve shifts upward. This allows you to bid higher for quality users while maintaining the same ROAS targets.
    • Dominance: You can outbid competitors who are still stuck in the legacy 30% ecosystem.

4. The Sustainability Gap (Break-Even Point)

Every game has a break-even point where the cost of development and maintenance is covered by revenue.

  • The Blocker: High commissions artificially raise the bar for success. Niche genres with tight margins often fail simply because the "Apple Tax" eats the specialized profit margin.
  • The Onside Fix: Viable Niches.
    • Survival: Lower commissions lower the threshold for success. A game that was "unprofitable" on the App Store becomes a sustainable business on Onside.
    • Diversity: This opens the door for risky, innovative, or niche titles that previously couldn't survive the 30% cut.

The Math: 30% vs. 10% Commission

Let’s look at the hard numbers. Unlike some competitors that charge monthly subscriptions just to access the market, our model is purely success-based.

Scenario: You have a casual game with an Average Revenue Per User (ARPU) of $1.00.

| Metric | Legacy App Store (Standard 30% Fee) | Alternative Store (10% Total Fee*) | The Difference | | :------------------------- | :---------------------------------- | :---------------------------------- | :------------------------- | | Gross ARPU | $1.00 | $1.00 | — | | Store Commission | -$0.30 | -$0.10 | Savings: $0.20 | | Net Revenue (You Keep) | $0.70 | $0.90 | +28% Revenue | | Hypothetical CPI | $0.60 | $0.60 | — | | Profit Per User | $0.10 | $0.30 | +200% Profit | | ROAS | 116% | 150% | Higher Scale Potential |

*Note: The % estimate includes Apple's new 5% Core Technology Commission (CTC) for digital goods + ~3% payment processing + Onside platform fee 8%.

The Key Takeaway:

While the revenue increase is 28%, the Profit Per User increases by 200%. This is the leverage that allows independent Publishers to scale. In the legacy model, you are scraping by with a thin margin. In the new model, you have a war chest.

Summary: Fix Your P&L

The decision to distribute outside the App Store is often framed as a technical or regulatory choice. In reality, it is a financial imperative.

By moving your EU and Japan distribution to a lower-commission infrastructure, you aren't just fighting the system—you are fixing your business model.

Ready to see the difference?

Model your projected earnings and see exactly how much faster you can grow when you keep 90% of your revenue.

Calculate Your Savings with Onside